[4x4addict]

Originally Posted by GTO

Detroit is perhaps the worst location now to open a new factory,

True. Most of the foreign manufactures prefer to go south as cost of land and labour is much less compared to the North. But it is good sound bite for Mahindra and for US Politicians.

[n.devdath]

This is a mix of appeasement, diplomacy and a concerted attempt at getting their act right in the PV space there, which has been failing repeatedly due to regulations and other reasons.

This will also give them an opportunity to assemble Ssangyong vehicles with their own products.

If it doesn't work out, they can convert it to a tractor plant, which was anyway being planned.

http://www.thehindubusinessline.com/...cle9766809.ece

[extreme_torque]

If I was a manufacturer I would probably be working on developing an electric car, not the kinds Mahindra has been making, and not these fruitless endeavours. Mahindra has absolutely nothing going for it in the toughest automobile market in the world. Not the price, not the looks, not the reliability, not the performance, nor the brand cache. Wasteful in my opinion.

[V.Narayan]

As an Indian this is a proud moment for me that an Indian auto company is setting up a production facility in USA the mecca for cars. In its own way this is a milestone for the Indian Auto industry just as becoming the 5th largest market in the world a while back was. With regard to the questioning tone of some posts I am sure M&M must have done their homework on labour relations, US laws, emission norms etc before dropping a large investment in. It is a reflection on India that our companies are stepping out and becoming MNCs in their own right. Article below on Indian investments in USA. Kudos to M&M.

http://www.thehindu.com/news/interna...le20460688.ece

The release of a new study by the Confederation of Indian Industry (CII) of Indian companies in America turned out to be an occasion to shore up political support for continuing economic engagement between the two countries in a political climate of protectionism, on Tuesday, at the Capitol.

The study “Indian Roots, American Soil,” found that 100 Indian companies have created 1,13,423 jobs in the U.S with an investment of $17.9 million, across all States. Several lawmakers who spoke at the event pledged their support for India-US partnership, acknowledging the contribution of Indian businesses to American economy.

New Jersey, Texas, California, New York and Georgia are home to the most number of workers in America directly employed by Indian companies. New York, New Jersey, Massachusetts, California, and Wyoming have the highest foreign direct investment (FDI) from Indian companies, the study found.

The fifth edition of the study that appears every two years, has political significance this year given Donald Trump administration’s strong views on economic ties that displace American workers.

Indian Ambassador to the U.S Navtej Sarna noted that the report was being released a day after a meeting between Mr. Trump and Prime Minister Narendra Modi in Manila, Philippines. “The President and the Prime Minister have developed a strong personal relationship,” Mr. Sarna noted. “That Indian companies are spending significant amounts in America as part of their CSR initiatives is testimony to the fact they are deeply invested in this country and society.”

The companies in the study spent $147 million in CSR and $588 million in research and development facilities in America. On an average, each American state or territory received $187 million in investment by Indian companies. 85% of the companies plan to make more investments and 87% of the companies plan to hire more employees locally in the next five years.

The amounts may not compare to foreign investments from China, Korea or Japan but it is a first step in the right direction for an industry that till 1983 was fined for producing more than the licensed quota.

[D33-PAC]

This will be interesting to watch from the sidelines.
Very few DESIs have succeeded in making it big time abroad.

LANCO, GVK, Adani have lost their shirt in Australia. Birla and Lakshmi Mittal were good in acquiring already operation assets (Novelis-Birla, Arcelor+Mittal). Those were commodity products to begin with so it's understandable why.

Having said that, I'd imagine that Mahindra would have to go above and beyond to get rid of the typical stereotypes associated with desi products.

Very few people care or know that Range Rover is owned by TATA. But try to sell "Mahindra" to the average guy in Kentucky and you get a ???? .

HCL and Essar are well documented for their epic North American tragedies.
HCL set up a plant in California a long time ago to manufacture computers - it never succeeded due to the third world image of an Indian computer. Essar also didn't get funding for their Minnesota mines.

As someone rightly pointed out, dealing with the US Dealership Mafia which is backed by the government/local industrialists nexus and regulations won't be a walk in the park.


A daring move by the Mahindra Group. But interesting to watch from the sidelines nonetheless. During a period of great xenophobism, it's nice to see Indians creating jobs for Americans - contrary to the stereotype.